Net income for Deere & Co. dropped 24.3 percent in its fiscal fourth quarter, from $806.8 million in fiscal fourth quarter of 2013 to $649.2 million in this year’s fourth quarter concluded Oct. 31. Worldwide net sales and revenues decreased 5 percent to $8.965 billion for the fourth quarter and also for the full fiscal year to $36.1 billion. However, the construction and forestry division did well, while the agriculture and turf division slipped because of a downturn in the global agricultural sector.
Net sales for the worldwide equipment operations declined 7 percent for the quarter and decreased 6 percent for the year compared with the same periods in 2013. Equipment net sales in the United States and Canada decreased 10 percent for the quarter and 8 percent for the year.
Construction and forestry equipment sales, however, jumped 23 percent for the quarter and 12 percent for the year as a result of higher shipment volumes and price realization. Increased sales were partially offset by the unfavorable effects of currency translation.
Deere expects worldwide sales of construction and forestry equipment to increase by about 5 percent in 2015. The gain reflects further economic recovery and higher housing starts in the U.S. as well as sales increases outside the U.S. and Canada.
